Recently, there have been many debates over the important issue on how companies and governments in the past decades have been increasingly sourcing a wide range of tasks to offshore sites. A group member of ours is an overseas buyer for his company. He is fortunate enough to experience what that is like firsthand. As a buyer, he is required to travel to different countries where large labor and talent pools are available at lower costs to try to procure goods and services at the lowest price, in order to help his company reach higher profits. Many Americans believe that outsourcing is one of the main reasons that the unemployment rate has been increasing in the United States, so they complain and publicly criticize the companies and governments who outsource jobs abroad. Also many U.S. workers (from white- collar well educated individuals to semi-skilled workers) have become more concerned about the security of their jobs due to increasing global economic integration since the early 2000s.…
George Elton Mayo was born on Boxing Day (December 26), 1880, in Adelaide, Australia and lived until 1949. (economist.com) Mayo was the oldest son of George Gibbs Mayo and Henrietta may. He has an extensive list of schools where he received education, starting with the Queen’s School and Collegiate School of St. Peter. Following that Mayo, attended the University of Adelaide and Universities in Edinburgh and London where he lost his interest in pursuing a career in medicine. Starting in 1903 he moved back and forth between London and Adelaide where he held jobs as a writer, English teacher, and became a partner in a printing company. Then in 1907, still not finding his calling in life he went back to school to pursue degrees in philosophy and psychology under (Sir) William Mitchell, where he would win the Robby Fletcher Prize in psychology and graduated with honors. Following his last stint of education Mayo, became foundation lecturer in mental and moral philosophy at the University of Queensland and shortly after married his wife Dorothea McConnel (Bourke adu.edu)…
Motivation and Rewards have a direct impact on employee satisfaction which in turn related to employee productivity. Never before has the market been so competitive that organizations nowadays have to make it to where employees would want to stay. Recent trends of globalization, outsourcing, and the like have just magnified the need of organizations to remain competitive not only in their service that they provide but in providing service to its key stakeholders- the employees.…
The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped over seas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.…
Picture this: your company is doing well but you realize that the cost of materials and employees, here in America, is costing your company too much money and the profit you are getting is minimal. You decide the best thing for your company is outsourcing. As a company owner your main concern lies in the interest of the company, not the effects it will have on America’s wealth. You want your company to succeed by increasing your profits; therefore, you want costs of materials and employees to be low. This plan will ultimately make you richer.…
In today globalise fast paced economy; many companies do not have the internal resources necessary to hire the top talents needed to succeed in the marketplace. With the constant pressure to reduce costs and focus on core competencies, many companies are replying on outsource providers.…
With the increase in technology there are less demands for people to complete jobs, saving businesses an extra payroll. Although, technology has been helpful in many ways, it also…
The U.S. federal and state governments are contributing to the problems created by outsourcing due to their lack of monitoring and data gathering on the number of jobs that are being exported. Without having the needed statistics on the number of jobs that are being exported, the full impact of job loss cannot be properly quantified. The U.S. Commerce and Labor Departments claim that the lack of monitoring system to record the number of outsourced jobs in America is due to a lack of resources. This thought process seems contradictory as the federal government spends over $130 billion each year on research and development, and a fraction of this spending would be enough to grasp the full scale of this outsourcing issue (52). This prevents any meaningful understanding for the U.S. people on the scale of jobs being outsourced, the business’s and occupations being affected by outsourcing, and the economy’s potential responses to the negative impacts of outsourcing. With the absence of this data, corporations are able to continue concealing…
Outsourcing jobs is a major epidemic facing the American people today, because it is leading to higher and higher unemployment. Many critics argue that outsourcing benefits the American majority because it makes the products purchased at home in America a lot cheaper than they would be. These cheaper prices are because the cost to produce the items is lower since the jobs were outsourced. “Cheaper prices for consumers goods is often the first thing cited when defending outsourcing” (Hargreaves). However, most people don’t see what the negative effects of outsourcing are. Katherine Paralta, part of U.S. News, acknowledges that many Americans lose their jobs from outsourcing, she later even went on to say that as many as “3.2 million Americans have lost their jobs since 2001” (Peralta). These people are then in need of jobs to support themselves and many cannot find these jobs. What Peralta is saying is that when companies outsource their productions to cheaper areas, they are laying off the American workers which causes these people to desperately need money…
Frederick W. Taylor, a management pioneer, stated that existing reward systems were not designed to reward a person for high production (Ames & Ames, 1989). He observed a very interesting phenomena. It seemed that once a worker realized someone producing less was receiving the same kind of rewards, he would also decrease his own level of production. So, in order to solve this problem, Taylor worked on developing a system that would financially compensate each worker accordingly. This work evolved into existing theories of motivation. Nowadays, money remains a major player in the game of motivation but in further developing these theories, other variables have been added.…
Companies are asking for more from their employees now than ever before. By downsizing and outsourcing, and otherwise changing the corporate world for their employees, Information Technology companies have fundamentally changed the relationship between the organization and its employees. Indeed, Information Technology companies are becoming more and more eager to implement a scaled-down version of their operations as a means by which to minimize expenditures and maximize profits. "You have workers that are often difficult to train when willing, but are often unwilling to really work and earn their way" (Torres C2-6).…
Faced with two tasks of equal complexity, a business is motivated to mechanize the more costly process (Feng & Graetz, 2015). Once the costs of human labour outweigh the costs of mechanization businesses have the incentive to switch. Many of the jobs paying workers a minimum wage are low skill and involve a high turnover, such as in fast food or the restaurant industries (Desilver 2014). In these situations, replacing workers with machines is a cost effective solution. With a single fixed expense, several variable expenses (worker salaries) can be eliminated entirely, removing a cost of production. Given that a business’ primary goal is to turn a profit, if mechanization has lower costs than actual employees businesses will switch at the expense of youth…
With the increased competition and other challenges, Australian organisations face a new frontier, managers have to find more innovative and creative methods to maintain strong competition, and one of these methods implemented into business operations is offshoring (ed. RMIT University 2014). What is offshoring? According to Zuckerman (2008), offshoring is described as the relocation of business processes to another country. In other words, it is a global expression of ‘outsourcing’ and it refers to a business decision to employ workers in another country to do the work once done by locals of the origin company (Parliament of Australia 2005). Although offshoring is deemed by many economist as controversial, there are undeniably benefits that rest within offshoring in its function to reduce labour costs. A frim that is able to reduce costs in theory will be more able to compete in the global economy (Business Basics 2009, p.1).The reduction in labour costs can prove to be quite significant, and can save between an estimate of forty and seventy percent in labour costs. The savings however are partially offset by about ten to twelve percent due…
The natural reflex might be that people should receive higher pay for innovating effectively. But our research1 suggests otherwise. Surprisingly, the secret of persuading people to focus simultaneously on developing new businesses and managing current operations may be to rely less on pay for performance. In fact, companies that achieve both objectives de-emphasize performance pay or use it in a more nuanced, less intense manner. Crucially, they combine it with an unusually inclusive culture. In these companies, employees feel that their interests and those of the business are much the same, so they naturally try to do what is best for its current and long-term welfare, just as they do for themselves in their personal lives. Pay for performance may still have an important job to do in such a culture, but as a supplemental boost rather than a primary driving force.…
In a world of globalization, U.S. companies are constantly seeking strategies to become more competitive. Important objectives of the strategic response have been to reduce costs, stay ahead of competition, and enhance profits. Outsourcing has become a main cost-cutting strategy in the twenty-first century. It occurs when a company moves work out of the enterprise. A special report in the Canadian Business Review magazine refers to outsourcing as a strategic tool. The author, Michael F. Corbett, states that in the 1920s and 1930s, the model hat has shaped our thinking about organization has been that of a large, integrated corporation that own, manage, and directly control most or all of its assets and resources. However, today's organizations are increasingly turning to outsourcing and changing the way they do business. As a result, outsourcing becomes a tool that challenges managers to think about creating more flexible organizations based on core competencies and mutually beneficial, long-term outside relationships. I agree with the author in this area. It is impossible for any organization to have expertise in all areas of the company. Therefore, it is wiser to outsource some of the work to other organizations that can do it more efficiently in order to save time and money. How well this process will work depends on the relationship between the parties. Therefore, it is a key element to develop a fair and honest relationship in which both parties can benefit by working together.…
